Mega First Corporation Berhad (KLSE:MFCB) offered to acquire Stenta Films (Malaysia) Sdn. Bhd. from PT Argha Karya Prima Industry Tbk (IDX:AKPI) and others for approximately MYR 200 million on May 24, 2021. The consideration comprises of acquisition of the entire issued and paid-up capital of Stenta Films for MYR 0.9933 per share in cash subject to any adjustments pursuant to the sale and purchase agreement. In the event the acceptance rate is below 100% but is at least 70%, MFCB agrees to grant to the remaining minority shareholders a Put Option to sell their shares to MFCB and the remaining minority must include PT Argha Karya Prima Industry who shall hold at least 19.88% of the issued and paid-up capital of Stenta Films. The Put Option shall be exercisable on, and only on, two definitive dates, and not during the entire period of the option period which are either at the end of the third anniversary; or at the end of the fifth anniversary; from the completion date of the agreement; it shall only be exercised in unanimity and in whole, and not in part, by the minority shareholders of Stenta Films; and the option price shall be determined based on the higher of the purchase consideration, less dividends paid post completion of the agreement; and the purchase consideration plus after-tax profits post completion of the agreement, and less dividends paid post completion of the agreement. The Put Option is subject to the execution of a definitive Option Agreement. MFCB intends to fund the acquisition through a combination of internally generated funds and bank borrowings. The consideration translates into an EV/EBITDA multiple of 7.1x and a Price/NBV multiple of 1.96x. The transaction is subject to the execution of a definitive sale and purchase agreement and may be subject to other regulatory authorities of Malaysia, if required. The Offer is subject to the receipt of acceptance of at least 70% of the issued shares of Stenta Films. As of May 24, 2021, MFCB has received a total acceptance representing 75% of the issued shares. The acquisition is not subject to the approval of shareholders. It is expected that the agreement, and if applicable the Option Agreement, will be executed and completed by July 2021. The acquisition of Stenta Films will immediately contribute positively to the revenue and profit of the MFCB Group.